Custom assets and objects for map making?

[enk]

I need help!

I'm using blender

I have been following this tutorial
http://hpl2.frictionalgames.com/third_pa...3d:blender

I can open my model in ModelEditor but it has no texture =S

I suppose because I don't have a .mat file...how can I make one?
Do I need the texture to be a .dds in the same folder?

I am new to all this =)
Any help is greatly appreciated thankyou.

EDIT -

I read the previous page and found out I can add textures to it by clicking add material, and selecting a .mat...

herp a derp a derp